BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the time period after you make a purchase until the time the interest starts to get charged.
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the time period where interest builds on the amount you purchased.
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Detailed explanation-1: -A credit card grace period is the duration between your purchase date and the due date of the next billing cycle. If you repay your outstanding amount in full during the grace period i.e. before the due date, the card issuing bank doesn’t charge you any interest.
Detailed explanation-2: -How long is the grace period on a credit card? Under federal law, credit card issuers must give you at least 21 days between the time your billing cycle closes (which is when your statement is generated) and the due date for your payment.
Detailed explanation-3: -Grace period: a period of time (usually 21 days) during which, if you pay your full balance by the due date, you are not charged interest on new credit card purchases.
Detailed explanation-4: -A period of time during which a debtor is not required to make payments on a debt or will not be charged a fee. For example, most credit cards offer a grace period of 20 to 30 days before interest is charged on purchases; as long as you pay your bill in full within the grace period, you won’t owe any interest.